Hong Kong-listed developer Kerry Properties has teamed up with the real estate arm of Singapore sovereign wealth fund GIC to purchase a piece of Shanghai land designated for a retail-led mixed-use development.
Kerry announced Wednesday that it had won a bid for the Pudong site in partnership with GIC for a consideration of RMB 6.013 billion ($930 million). GIC will hold a 60 percent stake in the joint venture, with Kerry owning 40 percent.
Situated at the junction of Jufeng Road and Zhangyang Road, the project site measures 66,060 square metres (711,064 square feet) and is expected to yield a gross floor area of 390,000 square metres. The partners are paying RMB 15,418 ($2,389) per square metre of built area.
“With its prime location, and central accessibility by public and private transportation, Kerry Properties is confident of the site’s strong development potential and we look forward to our first partnership with GIC,” said Serene Nah, Kerry’s chief financial officer.
Transit and Views
The site in Jinqiao subdistrict sits at a transit interchange with access to Shanghai Metro lines 12 and 6, as well as to a bus terminal serving eight routes. The location borders the Caojiagou green space and overlooks Puxing Culture Park and the future Jufeng Sports Park.
The consortium plans to build a mixed-use development encompassing a 219,00 square metres of retail space and another 25,000 square metres of grade A offices. Also in the plans are 45,000 square metres of residential space.
“This unique retail-anchored mixed-use project will capitalise on the robust domestic consumption in Shanghai,” said Lee Kok Sun, chief investment officer of GIC Real Estate. “As a long-term investor, we remain confident in the retail sector and will continue to invest in high-quality, well-located retail projects in China, alongside local market leaders.”
Building on Success
Kerry described the Jinqiao project as a new catalyst for the company’s portfolio, signifying continued confidence in Shanghai’s future.
The developer, led by the youngest son of billionaire founder Robert Kuok, has found success in the megacity with previous projects including the Jing An Kerry Centre in Jing’an and Kerry Parkside in Pudong.
The landmark Jing An Kerry Centre consists of three high-rises, one of them housing the 508-room Jing An Shangri-La hotel, plus shopping centre, events complex and offices. Kerry Parkside likewise comprises three skyscrapers, one each for offices, residences and a hotel.
Kerry’s most recent big land acquisition in mainland China was in May 2019, when the group scored the rights to a 98,053 square metre site in the eastern city of Hangzhou after placing a bid of RMB 6.814 billion at a government auction.
The win entitled Kerry to use the site in the hometown of Jack Ma’s Alibaba to build a 229,613 square metre mixed-use property incorporating office space, retail and a hotel. The company already operates the 204,000 square metre Hangzhou Kerry Centre near the city’s West Lake.
Kerry was one of China’s top 10 developers by operating income in 2019, raking in RMB 5.05 billion.